Gold prices in Egypt fell by 7.7% during the trading week ending on Saturday evening, while the ounce declined by 0.4% in the global markets during the trading week ending last Friday evening.
This decline is attributed to the strong rise in the US dollar index at the end of the week, after the statements of members of the US Federal Reserve confirmed the commitment of the US Central Bank to keep interest rates high for a longer period. In addition to the release of US data, expect an increase in inflation rates to about 4.5% during this May.
CEO of Dahab Masr Fady Kamel said that gold prices in Egypt declined due to the repercussions of the government’s decision to allow citizens returning from abroad to bring any amount of gold, whether ingots, pounds or artifacts, without incurring any fees other than a value-added tax for only six months. This prompted citizens to sell gold they own due to fears from sharp decline in prices after pumping more gold ore and increasing the supply.
Saeed Imbaby, Executive Director of the iSagha platform for trading gold and jewellery via the internet, said that gold prices fell by EGP 200, in local market during the week’s trading, as a gram of 21-Karat gold opened transactions at the level of EGP 2,600, and fell to the level of EGP 2,300. Gold transactions concluded at the level of EGP 2,400, while the ounce declined by $8, as it opened trading at the level of $2,018, touched $2,055, and closed the trading week at the level of $2,010.
Imbaby added that a gram of 24-karat gold recorded EGP 2,742, a gram of 18-karat gold recorded approximately EGP 2,057, a gram of 14-karat gold recorded about EGP1,600, while a pound of gold recorded nearby EGP 19,200.
He pointed out that gold prices fell by EGP 10 in the local markets during Saturday’s trading as a gram of 21-karat gold opened for transactions at the level of EGP 2,410, decreased to the level of EGP 2,300, and rose to the level of EGP 2,450, and concluded transactions at EGP 2,400, coinciding with the weekly holiday of EGX.